Higher manufacturing price drives inflation to 3.42pc

New Delhi, Oct 5: Inflation rate for the week ended September 22 increased to 3.42 per cent as against the previous week's 3.23 per cent, due to a rise in manufactured product prices.

The annual inflation rate was 5.43 per cent during the corresponding week of the previous year, an official statement said here.

Annual inflation was 3.23 percent on September 15, the lowest rate since December 2002.

It is the sixth straight week when inflation has been below four per cent and the 16th week when it has been under five per cent The wholesale price index (WPI) for all commodities for the week ended September 22 rose by 0.3 per cent to 215 from 214.4 for the previous week.

The index for primary food articles declined by 0.1 per cent to 226.2 from 226.4 for the previous week.

The index for the food articles group declined by 0.1 per cent to 225.4 from 225. for the previous week due to lower prices of urad, gram, and condiments and spices (one per cent each).

However, the prices of barley (two per cent) moved up.

The index for fuel, power, light and lubricants remained unchanged at its previous week's level of 322 (Provisional)

The index for manufactured products group rose by half per cent to 187.2 (Provisional) from 186.2 (Provisional) for the previous week. The index for 'Food Products' group rose by one per cent to 189.2 (Provisional) from 187.4 (Provisional) for the previous week due to higher prices of oil cakes (six per cent) and salt, gingelly oil, rice bran oil and imported edible oil (one per cent each).

However, the prices of skimmed milk powder (two per cent) and gur (one per cent) declined.

The index for 'Textiles' group declined by 0.2 per cent to 132.9 (Provisional) from 133.1 (Provisional) for the previous week due to lower prices of hessian and sacking bags (three per cent) and hessian cloth (one per cent).

The index for 'Chemicals and Chemical Products' group rose by 0.3 per cent 203.4 (Provisional) from 202.7 (Provisional) for the previous week due to higher proces of acid (all kinds) (12 per cent) and phenol (one per cent).

The index for 'Non-Metallic Mineral Products' group rose by 0.1 per cent to 207 (Provisional) from 206.8 (Provisional) for the previous week due to marginal rise in the prices of cement.

The index for 'Basic Metals Alloys and Metal Products' group rose by 1.6 per cent to 247.0 (Provisional) from 243.0 (Provisional) for the previous week due to higher prices of blooms and billets and slabs (10 per cent each), oromild steel and tensile plates, wire (all kinds) and lead ingots (five per cent each), angles, channels and sections (four per cent), ferro silicon (three per cent) and zinc ingots (two per cent).

However, the prices of aluminium ingots (three per cent) and steel ingots (plain carbon) (two per cent) declined.